According to S&P Global, ASEAN’s manufacturing continued to expand strongly in November 2025, with the Purchasing Managers’ Index (PMI) rising to 53 (from 52.7 in October 2025). This is the third-strongest performance in the index’s history, surpassed only in October 2021 and September 2022.

Photo source: AFP Photo/Adek Berry

ASEAN’s manufacturing growth was driven by sharper increases in new orders, output, and purchasing activity. While domestic demand strengthened, international demand weakened, reflecting an uneven global trade environment.

To meet rising production needs, firms ramped up purchasing activity for the fourth consecutive month. Input buying grew at its fastest pace since March 2024, signalling stronger confidence in supply chains. However, hiring remained subdued. Employment increased for the third straight month but only fractionally, making it difficult for firms to keep up with growing workloads.

As a result, backlogs rose at the fastest pace in the survey’s history, indicating intensifying capacity pressures across the region. Cost conditions also became less favourable. Input prices surged — at their quickest rate in nearly a year — prompting firms to raise selling prices, though inflationary pressures remained historically moderate.

Looking ahead, manufacturers remained optimistic about future output, but overall sentiment remained weaker than the long-term trend, suggesting lingering caution despite the sector’s strong near-term performance./.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam